Results 1 to 18 of 18
  1. #1
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Budgeting PPC
    For those that use PPC as a marketing channel...

    Do you go all out and hope you make a profit?

    Do you budget a fixed percentage each month?

    Do you budget a fixed percentage of the previous month's commissions?

    How do you set your budgets?

    Thanks!

    ~ Denis
    Salty kisses, Sandy toes, and a Pirate's heart...

  2. #2
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    England
    Posts
    4,327
    "Do you go all out and hope you make a profit?"

    Only if you have so much money that it doesn't matter to you.

    Any budget should be only what you can afford to lose

  3. #3
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Quote Originally Posted by Julian
    "Do you go all out and hope you make a profit?"

    Only if you have so much money that it doesn't matter to you.

    ...
    Thanks Julian, I needed a chuckle...

    I'm curious as to what others do - currently I am testing PPC at a fixed % based on my previous month's earnings for that particular niche.

    ~ Denis
    Salty kisses, Sandy toes, and a Pirate's heart...

  4. #4
    ABW Ambassador isellstuff's Avatar
    Join Date
    November 9th, 2005
    Location
    Virginia
    Posts
    1,659
    I always set a daily budget that I don't mind losing. This budget started out very small and over the years has become larger as I learn what works. For campains that chew up a lot of of cash in a day, I will monitor affiliate link clicks on my offer page and suspend the campaign if not enough people are clicking through. (a lot of my merchants batch report)
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  5. #5
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    Nunya, Business
    Posts
    23,684
    I don't really set any budgets unless I go on vacation or something, since I monitor it during the day. But I don't recommend that so it's good to set what you're willing to spend/lose.

    What I do watch is clicks and I have expectations for how many sales I think I should get for a certain amount of clicks. We all have different limits.

  6. #6
    ABW Ambassador affninja's Avatar
    Join Date
    December 11th, 2005
    Location
    Nor-Cal
    Posts
    651
    On the campaigns I've been running for years, the budget is set to roughly double the avg daily spend. The reason for that is on avg, every click earns more than it costs, so I want all the clicks I can get. But the budget is there as a safety net in case things "go crazy" all of a sudden.

    On new campaigns, I do set a lower budget based on two factors: what I'm prepared to lose, and what I think will get enough clicks to determine a valid sample size to judge whether or not an offer will make money.
    Last edited by affninja; January 29th, 2009 at 04:35 PM. Reason: typo

  7. #7
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    England
    Posts
    4,327
    I think the answer is different depending on your level of PPC experience.

    If you are new to PPC, set your budget very low

    If you know what you are doing, you could have a budget that would make some people cry

  8. #8
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    2,420
    >>you could have a budget that would make some people cry

    We have one client set to spend 100 times per day what they actually spend.

    As Trust says, we never stop monitoring it during the day. Scary stuff!

  9. #9
    Analytics Dude Kevin's Avatar
    Join Date
    January 18th, 2005
    Location
    Rochester, NY
    Posts
    5,904
    We have one client set to spend 100 times per day what they actually spend.
    On the merchant end, I would say this is a solid strategy if you study budget on the campaign level, and monitor it.

    The first question I would ask Convergence is how well you can study your results. It's one thing to say you make more than you spend, but that's still dangerous, and can change quick.

    If you're an affiliate, and I'm assuming you are, I would get down to brass tacks as quickly as you can, meaning don't trust Google analytics to tell you what is working if you are Broad or Phrase matching. They'll only report to you the key phrases that trigger the ads, not what the actual consumer typed in.

    So get in your web logs, and study the words and phrases that REALLY convert. Then, and only then, can you feel 90% safe with any budget Because then and only then (unless you're only bidding Exact match) will you know that each click is going to have a strong chance of getting through to the merchant.
    Kevin Webster
    twitter: levelanalytics

    Kayak Fishing
    Web Analytics and Affiliate Marketing

  10. #10
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Quote Originally Posted by Kevin
    ...
    The first question I would ask Convergence is how well you can study your results. It's one thing to say you make more than you spend, but that's still dangerous, and can change quick.

    If you're an affiliate, and I'm assuming you are, I would get down to brass tacks as quickly as you can, meaning don't trust Google analytics to tell you what is working if you are Broad or Phrase matching. They'll only report to you the key phrases that trigger the ads, not what the actual consumer typed in.

    So get in your web logs, and study the words and phrases that REALLY convert. Then, and only then, can you feel 90% safe with any budget Because then and only then (unless you're only bidding Exact match) will you know that each click is going to have a strong chance of getting through to the merchant.
    Hi Kevin,

    Yes, I'm an affiliate - have been for many years. Have failed and succeeded in PPC campaigns in the past. Like to think I may have learned a bit along the way. I am trying to establish a PPC budget with the spend being a fixed percentage of the previous month's earnings and am curious if others do the same. Or...do others create a budget at all. If so, how do they come up with a budget. Times being what they are, I'm looking for areas to improve upon. I've also added a good deal more sites in the last five months and plan on tripling the total by year's end. Another reason to test different budget methods.

    I love stats! So analyzing data is a joy. I understand my results.

    I do not direct link - all traffic goes through my sites first - leaving me with "double duty". Optimizing ads to drive traffic to my sites and optimizing my sites to drive traffic to the merchants.

    Thanks everyone for your input.

    ~ Denis
    Salty kisses, Sandy toes, and a Pirate's heart...

  11. #11
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    England
    Posts
    4,327
    "PPC budget with the spend being a fixed percentage of the previous month's earnings"

    Maybe a % of the previous month commission paid would be better?

  12. #12
    More Cheesier Than Ever Cheesehead's Avatar
    Join Date
    January 18th, 2005
    Location
    Land of The NFL Champs!
    Posts
    2,942
    I start small, test for a week or two, then shut off to test the "stickiness" of my site. That is, after I pause the ad, what happens to those that visited previously. Do they come back and buy later? If so, then I would count them as conversions. If not, then all I have to work with is the immediate traffic to merchant, which generally can not be bought at a profitable rate. Also check stats and logs - look for searches that are clearly associated with un-targeted traffic and negative match words to prevent these in the future.

    Doing PPC as an affiliate is tough! I do have a few niches that work though.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  13. #13
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Quote Originally Posted by Julian
    "PPC budget with the spend being a fixed percentage of the previous month's earnings"

    Maybe a % of the previous month commission paid would be better?
    earnings = commissions for discussion sake...

    I would like to keep my PPC advertising spend at 5% of the previous month's commissions for a particular niche / store.

    ~ Denis
    Salty kisses, Sandy toes, and a Pirate's heart...

  14. #14
    Full Member OICUAM2's Avatar
    Join Date
    May 18th, 2006
    Location
    Madison, WI
    Posts
    421
    Basing PPC spend on a % of last month's earnings makes sense if you have a year round niche, but most affiliates in the retail sector wouldn't want to base a December budget based on November earnings.

  15. #15
    Newbie 10KMoneyMaker's Avatar
    Join Date
    February 4th, 2009
    Posts
    4
    I would suggest a very small budget until you learn PPC and how to use it effectively. I have lost many a dollar on PPC because I had no idea what I was doing at first. Use only what you are prepared to lose when first starting out.

  16. #16
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Thanks again everyone.

    What I want is to know how YOU budget for PPC.

    Thanks again, in advance.

    ~ Denis
    Salty kisses, Sandy toes, and a Pirate's heart...

  17. #17
    Newbie
    Join Date
    January 17th, 2005
    Posts
    1,537
    Since there is NO guarantee you will make any money using PPC, you need to have a fixed amount you know you have on hand and can afford to risk. Then you need to test your ads ... keep the ones that get a good CTR relative to your other ones ... you should probably start with a large list of keywords and run those for a few days.
    Then drop the ones without any clickthrus.

    For example: buying books is a big deal online ... but most people KNOW what book they want, so you do way better for specific keywords than more generic ones. People search for authors more than most people think, so if you are a pushing Stephen King book that probably would be a good keyword as would the title of the book.

    I doubt you can make a whole bunch of money using PPC if you are not willing to spend at least $5/day.

    The commission you get should be seriously factored in the mix. If you sell a $20 book and make 5% you make $1. So if you are spending $5 for a book campaign, you need to sell 5 books a day to breakeven.

    If you sell a Spyware program for $40 and it pays 25%, you make $10 and only need to make ONE sale every TWO days to breakeven.

    As in real life, there are seasonalities to every PPC marketing program ... March is a good time to sell baseball gear or gear related to the teams in March Madness.

    As Claude Hopkins says in Scientific Advertising which by the way was published in the 1920's - test, test, test and more test ... go with the test winners.

  18. #18
    Member niche's Avatar
    Join Date
    September 4th, 2007
    Posts
    197
    I tend to go in high get the clicks and then gradually drop my bid. Sometimes works, sometimes doesn't
    [URL="http://www.affiliatemarketingintro.com"]Affiliate Marketing Basics[/URL]

  19. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. PPC bidding with In-house PPC
    By Patrick Vesperman in forum Search Engine Optimization
    Replies: 18
    Last Post: July 13th, 2009, 10:57 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •